Personal Finance

Is it good for Canadians to build a US credit rating?

  • Last Updated:
  • Jan 12th, 2016 12:25 pm
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB

Is it good for Canadians to build a US credit rating?

As the economies of the two countries gradually merge I was wondering if many Canadians are endeavoring to build a credit rating on US soil and what advantages they may see if successful.

Or are more and more American institutions just pulling our credit info from Canada, which should be more accurate as it covers a much wider range of activity? It sure would be nice if they just dissolved that border economically and merge the currencies. Imagine how that would spur business. Just a free flow of goods and services. Nirvana.
25 replies
Deal Addict
Dec 11, 2010
1700 posts
137 upvotes
Yeah, there's actually renewed calls for merging our currencies, as some people fear the Canadian dollar will go lower. As for creating a US credit account, I feel that if/when our currencies/economies do merge, the US banks will look at our Canadian credit scores.
Deal Addict
Sep 20, 2014
1637 posts
852 upvotes
Toronto, ON, CA
Lol how are they merging if the Canadian and US dollars are going separate ways? Same with the stock markets.
Deal Addict
User avatar
Dec 6, 2005
1784 posts
652 upvotes
St. John's
Don't you need a SSN to have a credit in the US and doesn't that require being a US resident or citizen, making it impossible for most Canadians to do this if it somehow made sense?
Deal Addict
Oct 28, 2009
1314 posts
289 upvotes
Apparently 46% Americans believe earth is less than 10000 years old. So they can keep their currency unless they pledge not to export their fundies. And their guns, and their racism...
Member
Jan 30, 2010
233 posts
35 upvotes
Toronto
bluenote wrote: Apparently 46% Americans believe earth is less than 10000 years old. So they can keep their currency unless they pledge not to export their funnies. And their guns, and their racism...
I wonder how all these millions of Canadians are living in the US if it sounds as bad as you are describing it here....And I definitely feel like US is more advance in sense of Economy compared to Canada.
Deal Addict
Jan 30, 2012
1836 posts
1399 upvotes
TORONTO
redflagguy2u wrote: I was wondering if many Canadians are endeavoring to build a credit rating on US soil
No, many Canadians aren't.
redflagguy2u wrote: and what advantages they may see if successful.
If you are looking to get credit from a US bank or live in the USA then a US credit history is useful to you. Otherwise it's pretty much useless.
redflagguy2u wrote: Or are more and more American institutions just pulling our credit info from Canada,
No, they aren't. In fact, did you know that credit bureaus are provincially regulated in Canada? In Ontario it's the Consumer Reporting Act: http://www.ontario.ca/laws/statute/90c33
Deal Addict
Oct 28, 2009
1314 posts
289 upvotes
roca1777 wrote: I wonder how all these millions of Canadians are living in the US if it sounds as bad as you are describing it here....And I definitely feel like US is more advance in sense of Economy compared to Canada.
How it works is, 90% of USA is ridiculously dark ages and poor.

Then 10% is progressive and drive the economy.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
> Lol how are they merging if the Canadian and US dollars are going separate ways? Same with the stock markets.

Admittedly, now is not an optimum time. :)
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
>>Or are more and more American institutions just pulling our credit info from Canada,
> No, they aren't. In fact, did you know that credit bureaus are provincially regulated in Canada? In Ontario it's the Consumer Reporting Act: http://www.ontario.ca/laws/statute/90c33

So the only purpose would be to get a credit card on US soil? Or a mortgage for US property but as we can only spend up to 6 months of the year there, probably not attractive for most.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
> How it works is, 90% of USA is ridiculously dark ages and poor. Then 10% is progressive and drive the economy.

You probably have a point there. Yet almost every time I financially deal with Americans, there is an increased pace, logic and pragmatism that pervades the whole process. Its like upgrading your business IQ. It is great.
Deal Expert
Oct 6, 2005
16872 posts
2557 upvotes
redflagguy2u wrote: As the economies of the two countries gradually merge.
Not until we become the 51st state; I doubt the US will open the flood gates for Canadian to work/live across the border like the EU. The American government is too paranoid.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
> I doubt the US will open the flood gates for Canadian to work/live across the border like the EU. The American government is too paranoid.

Yes - unfortunately they are showing those tendencies more and more.
Member
Sep 25, 2015
254 posts
76 upvotes
Calgary, AB
Yup, just look at California. Probably 1.5 million undocumented Mexican illegals working for less than $5/hour. I can imagine they would try to pay a Canadian illegal... $6 an hour, lol.

Donald Trump, would send them all back and make them build a wall at the border.

The American dream is winning the $1.3 Billion US lottery. There is no inbetween.
Member
Sep 25, 2015
254 posts
76 upvotes
Calgary, AB
roca1777 wrote: I wonder how all these millions of Canadians are living in the US if it sounds as bad as you are describing it here....And I definitely feel like US is more advance in sense of Economy compared to Canada.
Americans have put it on credit, to the tune of about $16 Trillion US owed. Canadians have also put it on credit.

If you mean advanced economy where you must work to pay debts owed, then yes - it is an excellent motivator. People will always take the short term buy a cigarette now thrill and pay it off a decade later. Thing is, will they pay it off? Donald Trump declared bankruptcy four times afterall.
Member
Sep 25, 2015
254 posts
76 upvotes
Calgary, AB
http://www.bbc.com/news/uk-31475945

There are many very successful people looking to completely sever their ties with the US. Under FATCA, you owe money to the US for life - yes life. Doesn't matter if you never worked a day in your life on US soil, you owe them taxes.

Brutal.
Deal Addict
Jan 30, 2012
1836 posts
1399 upvotes
TORONTO
NickelFinger wrote: Under FATCA, you owe money to the US for life - yes life.
Not quite. FATCA is a US law that requires foreign banks & institutions to file disclosure reports with the US govt on accounts held by US citizens in foreign countries, or face enormous fines.

The fact that US citizens are supposed to file tax returns with the IRS (even if they have never set foot in the USA) is entirely separate, and has existed long before FATCA.
NickelFinger wrote: Doesn't matter if you never worked a day in your life on US soil, you owe them taxes.
Sometimes. US citizens who live in other countries are supposed to file with the IRS, but in most cases they don't owe anything.
Member
Sep 25, 2015
254 posts
76 upvotes
Calgary, AB
There are about a million people in Canada that would be considered US taxable. Many owe $0 in outright taxes, but all are subject to IRS fines for not filing.

These rules and amounts fines and fees can be changed at any time. The cost to renounce a US citizenship has increased substantially in the last few years.

They have not collected fines up until now, but probably will once they are sure (through FATCA and the banks) that they have documented US taxable citizens.

http://globalnews.ca/news/1519628/want- ... t-in-line/

Even putting a $0 amount on a US tax return is quite difficult, many people pay thousands of dollars per year just to have someone else fill out the forms properly. Tax evasion in the US is a jailable offense. Failing to file, also jailable.

Assuming that you cannot properly fill out a "foreign tax compliance" US return (which the vast majority of people cannot) You are probably looking at paying a tax firm $1,000 per year from age 16 to 65 - Even if you don't make a single dime in the US.

BRUTAL.
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
It is good for Canadians who plan to live/work in the US one day. Everybody else, maybe not.

I live/work in the US now, and let me tell you, it would have been better for me to start my US credit history years ago. But who knew?
Sr. Member
Dec 20, 2006
526 posts
48 upvotes
The only reason a Canadian should build US credit is if you think you are going to move / live in the US. You can't even actually build real US credit without a SSN. It's not until you get a SSN and attach it to your US accounts that it all gets properly linked up. Like rj2wells, I wish I had opened some US credit cards before I moved to the US, would have made life a little easier.

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